Benefits of Section 8 Company Registration

Distinct Legal Identity

Section 8 Company is a separate legal entity and is different from it’s members. The Company has perpetual existence. Along with having organized operations and greater flexibility making it different with other comapnies.

Zero Stamp Duty

A Section 8 Company is exempt from the requirement of paying stamp duty on the MoA and AoA of the private or public limited company, which is applicable for registration of other kinds of company structures.

Name

Section 8 Company is not required to suffix “Public Ltd. or Private Ltd., next to it’s legal name. It can be registered with names as “Association, Society, Council, Club, Charities, Foundation, Academy, Institute, Organisation, and Federation”.

Credibility

Section 8 Companies are more reliable than all other forms of charitable organizations. They are governed by the Companies Act and are regulated strictly. Such as the requirement of a mandatory annual audit, and both the “MOA and AOA”.

No Minimum Capital Require

No minimum capital limit has been mentioned for a Section 8 Company in India. And the capital structure can be altered at any stage as per the growth requirements of the company. This implies that it can be formed without any share capital.

Membership

A registered partnership firm can become a member in it’s individual capacity and can obtain Directorship under the Section 8 Company Registration to promote no-profit objectives such as trade, commerce, arts, charity, education etc.